MILAN (AFP) - The Italian government's public offer of shares in electricity company ENEL will run from October 18-22, the economy and finance ministry said.
The government is selling up to 20 percent of ENEL via the public offer in Italy, and to institutions in Italy and abroad. The sale of 20 percent would reduce the state's stake to about 30 percent, from its current 50.6 percent.
"The size of the overall offering... will be announced by the ministry at least five days before the launch of the public offer, so no later than October 13," the ministry said.
In addition, the joint lead managers of the institutional offering will be granted a 30-day greenshoe option for further shares of up to 15 percent of the overall offering, it said.
The price of the offer will be the lower of the maximum price set on the launch of the public offer, and the institutional price, as set by the ministry at the end of the offer, it said.
The roadshow for the offering will start in Milan next Monday and run for three weeks, including further stops in Italy, in London, other European centres, the United States and Japan, it said.
The public offering in Italy includes incentives to encourage savers to buy the ENEL shares in the form of bonus shares for those keeping shares for 12 months, it said.
The overall offering is being coordinated by Mediobanca and Merrill Lynch International, while Lazard is adviser to the ministry.
Joint lead managers for the institutional offer are Mediobanca, Merrill Lynch, Goldman Sachs International, and Morgan Stanley.
This will be the third tranche of ENEL shares offered for privatisation. In the previous offer, in late October 2003, 6.6 percent of the company's shares were sold for slightly more than two billion euros (2.5 billion dollars).